As the 2024 BRICS summit gets underway in Kazan, Russia, crypto-related discussions have taken center stage. Lawmakers from Brazil, Russia, India, China and South Africa are exploring the possibility of Russian miners leveraging Bitcoin in international trade, with the aim of circumventing tough sanctions imposed by the United States.
Lawmakers propose Bitcoin sales by Russian miners
Originally formed as BRICS in 2006 by Brazil, Russia, India and China, the alliance expanded to include South Africa in 2010, becoming BRICS. This alliance seeks to unite influential developing countries to challenge the dominance of wealthier countries, especially those in North America and Western Europe.
Current discussions about it Cryptocurrency It represents a strategic step to confront economic challenges and enhance financial independence from Western powers.
According to A a report By Bloomberg Key lawmakers are calling on Russian miners to sell their bitcoins to international buyers. These transactions could enable buyers to use bitcoin and other cryptocurrencies to pay for imports, effectively bypassing Western sanctions that have severely impacted the Russian economy.
According to the report, through the use of Bitcoin and other digital assets, these countries aim to create an alternative financial path that circumvents traditional systems that rely on the US dollar and traditional banking services.
Richard Wolff, an American economist and professor emeritus at the University of Massachusetts Amherst, commented on the changing dynamics, noting that BRICS alliance It is gaining momentum as the global influence of the United States declines.
Wolf highlighted the failure of US military interventions in Vietnam, Afghanistan, and Iraq, noting that this decline in power is reflected in the geopolitical landscape. The economist also stressed that the BRICS countries are not only winning Political influence But it is also making economic progress.
Putin calls for the adoption of cryptocurrency
Ditto I mentioned By Bitcoinist Russian President Vladimir Putin has also been vocal about the need for BRICS countries to adopt cryptocurrencies and digital currencies in their financial transactions.
The Russian President believes that this shift could greatly benefit the economic alliance and other developing countries. However, Putin stressed the importance of creating a comprehensive one Systems To ensure a robust framework is in place before fully adopting cryptocurrencies.
In addition to discussions about cryptocurrencies, BRICS members unveiled a new payment platform, BRICS Pay, designed to challenge the dominance of the SWIFT financial system.
This blockchain-based platform aims to facilitate cross-border transactions between BRICS countries, providing an alternative means of conducting transactions Financial operations While evading US sanctions.
This initiative represents an important step towards revolutionizing financial transactions within the BRICS bloc, and underscores the alliance’s commitment to enhancing economic cooperation and reducing dependence on Western financial infrastructure.
At the time of writing, Bitcoin is trading at $65,845, down 2% over the past 24 hours and seven days.
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